Valuation report query

truescot

We have just had a valuation report done on a house we are buying and the valuation has come in at EXACTLY the price we are paying for the house. The same happended when we bought our current house.

Does anyone now if the Valuers/Surveyors are informed of the purchase price before they do the reoprt and if this has a bearing on the valuation they submit?

Doesn't really affect us but just intrigued at these coincidences. we are always told that house prices are not an exact science but in these instances they have been very exact!

bootalishus

I have only sold 2 houses but both times the buyers surveyor (bank valuer) asked me how much we had sold it for. I think as long as it is around the figure they think themselves they always but the sold price. I do not think this would be the case if they believed it was worth significantly less.

theGrinch

normally, the valuer will find out the price from the buyer, seller or EA and usually they will cite valuation as the same as a property's value is what someone is willing to pay for it within a reasonable timescale.

in the current market I have heard of quite a few valuations below asking price as caution kicks in. after all there is nothing in it for them to be too optimistic considering they are usually instructed by the lender.

will they value at more than the asking price, if there is convincing evidence that the agree price is less than market value, but this is usually not applicable.

occasionally, valuers will give more than one valuation depending on for example a) bricks and mortar valuation b) investment or based on time i.e. a 3-month sale or a 1-month sale.

Tassotti

truescot wrote: »

Does anyone now if the Valuers/Surveyors are informed of the purchase price before they do the reoprt and if this has a bearing on the valuation they submit?

Of course they are...and think yourself lucky that it came back at the original purchase price

A valuation has no context to property price, but whether the property is worth the money the lenders are 'giving' you.

These days, it usually comes back less, unless you have 50% deposit.

Debt_Free_Chick

Important to understand the difference between the valuation the lender asks for and a valuation that you ask for. Usually, the questions asked of the surveyor are slightly different ...

Lender's Question
Is this property good enough security for £xxx,000

Buyer's Question
Given the property condition, what's it worth?

HTH